Vasilis Tsaprounis
Independent Analyst
Τhe single European currency has stabilized slightly above the 1.11 level after yesterday's mild correction as signs of fatigue were clearly on the table.
Μixed macroeconomic data from both sides of the Atlantic did not allow for significant market volatility while at the same time acting as a weight on the continued upward movement of the European currency.
Surveys for the performance of the services and manufacturing sectors in Eurozone and US were announced close to estimates without causing much concern but keeping fears on the table about the growth rate.
Last month's disappointing US jobs data acted as a trigger to increase speculation against the US dollar, as several investors bet on a more than 25 basis point rate cut in September.
For now bets remain relatively unchanged with the possibility of a 25 basis point rates cut currently being the baseline scenario.
Fed Chairman Jerome Powell's speech at Jackson Hοle certainly stands out on today's agenda as investors eagerly await possible fresh messages for Fed's September meeting.
The European currency's rise of the past 2 weeks seems to have lost its momentum confirming the thought that signs of fatigue will soon appear on the table.
I will maintain this thought and the strategy of potentially buying the US currency near 1,12 level as during yesterday although the exchange rate approached this level I failed to find the correct entry point.
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Recommended Content
Editors’ Picks
EUR/USD holds gains above 1.1100 as USD weakens ahead of Powell
EUR/USD is consolidating weekly gains above 1.1100 in European trading on Friday. The pair draws support from the renewed US Dollar selling but the upside could be capped by the dovish ECB-speak. The focus now remains on Fed Chair Powell's speech in Jackson Hole.
GBP/USD stays firm above 1.3100, Fed/ BoE speakers eyed
GBP/USD is trading with mild gains above 1.3100 in the European session on Friday. Dovish Fed expectations continue to sag the US Dollar, as traders shift their focus to the speeches by Fed Chair Powell and BoE Governor Bailey at the Jackson Hole Symposium.
Gold bounces off support ahead of Powell’s Jackson Hole speech
Gold finds support from former range highs and bounces ahead of speech from Fed Chairman Jerome Powell. The speech could solar the outlook for Fed policy on interest rates, a key driver for Gold.
Decentraland price is set for a rally after breaking above the descending trendline
Decentraland (MANA) price broke above the descending trendline and trades up 1.5% as of Friday at $0.291. Additionally, on-chain data support further price gains, as MANA's Exchange Flow Balance shows a negative spike, and the long-to-short ratio stays above one.
Jerome Powell expected to hint at upcoming interest-rate cut in September
Market participants will closely scrutinize Powell’s speech for any fresh hints on the trajectory of monetary policy, particularly about the magnitude of the Fed’s first interest-rate cut in years.
Moneta Markets review 2024: All you need to know
VERIFIED In this review, the FXStreet team provides an independent and thorough analysis based on direct testing and real experiences with Moneta Markets – an excellent broker for novice to intermediate forex traders who want to broaden their knowledge base.